As a town that made its mark in American history because of California’s Gold Rush in the mid 1850s, Auburn CA is no stranger to maintaining stability during a tumultuous period. Experts examining any real estate market recommend evaluating the market based upon the area’s job security and growth and also the new construction in the area. To understand Auburn real estate, this article will examine its job growth, new construction, and current home sales.
Currently, the unemployment rate is at 3.3 percent in Auburn. This is significantly lower than the 9.7 percent national unemployment rate as reported in May 2010 by the National Conference of State Legislatures. A majority of the males in Auburn are employed in construction, hospitality, food services, and public administration. A majority of the females are employed in health care, educational services, hospitality, food services, public administration and professional, scientific, and technical services. Nearly 16 percent of the male population residing in Auburn is employed in construction. Since, the number is relatively high, it may suggest that the area is experiencing new construction in the area.
Auburn is located in Placer County. In May 2010, Placer County had 107 new building permits on file. Since January 2010, 408 new building permits have been filed with the county. This suggests a steady rate of growth for Auburn. In 2003, 2007, and 2008, Placer County led the nation in terms of job growth. Currently, the community is still growing and gaining residents. The Sacramento area where Placer County is located grew by 0.9 percent. However, California as a whole lost 800,000 jobs between July 2008 and July 2009. Despite the job loss, California is receiving 525,000 residents per year.
More than 60 percent of residents own rather than rent Auburn real estate. Last year, over 400 homes were sold in the Auburn community. The majority of the sales occurred in the third and fourth quarter of 2009. In the first quarter of 2010, over 50 homes were sold in the community. This number is slightly down from last year, where Auburn experienced over 60 home sales in the first quarter, according to CityData.com. The median prices, for these homes, fell somewhere between $250,000 and $300,000 for 2009. The first quarter of 2010 also held comparable prices of the homes sold in the area. Therefore, individuals are purchasing more moderately priced homes for little or no money down.
Most of Auburn real estate is located in a more urban area of the city rather than in a rural area. Auburn real estate typically has a vacancy rate around 2.5 percent. These numbers are significantly lower than any other part of the nation. In areas where unemployment is low, individuals have jobs. People with jobs can typically afford to purchase homes, if their credit is good and they have a down payment. The recent first time home owner’s incentives have also encouraged more people to buy homes.
Individuals who have a desire to purchase one of the Auburn homes for sale should take a look at the MLS listings. Currently, there are approximately 100 or more new homes listed for sale. Each home is in the $250,000 to $300,000 range. Therefore, the data on MLS is in agreement with the statistics pulled from CityData.com and Placer County websites. The area sustains growth probably because of its historical placement in American history and because many affluent individuals have settled in the area.
Auburn relies on professions that seem to withstand recessions, such as health care, entertainment and also construction, though debatable. Where people have jobs, houses can continue to be purchased whether for investment or for a primary residence. While the appreciation values in Auburn are down more than 20 percent, unemployment is still low, job growth is steady, as well as, new construction continues, despite economic reports. Residents of the town, expect population growth to reach 20,000 soon. However, they hope that it never grows beyond 40,000 inhabitants. Individuals considering Auburn real estate should feel confident that their investment will sustain another recession.